Television digest with electronic reports (Jan-Dec 1959)

8 Business Soaring In LA.; For years, 3 or 4 of the 7 Los Angeles stations made money, while the others barely got by or wound up in the red. But today that pattern is changing, as all 7 stations report excellent business this summer and buying for the fall proceeding at an unprecedented pace. Station executives gave us varied — and undoubtedly valid — explanations for their boom. The city is unique with its rapidly-expanding population, and its sprawling coverage area extending from the Pacific to San Bernardino on the east, north to Santa Barbara, and south to San Diego. KTTV (Ch. 11), the Los Angeles Times’ independent station, had a record second quarter, is enjoying its best summer sales season, and sales for fall indicate that season will be the most prosperous 3 months in the channel’s history, we were informed by pres. Dick Moore. The upbeat is for both local & national sales. Moore views this as a new awareness by national advertisers of the growing importance of the Los Angeles market. (“One thousand come in here every day from the East.”) He believes the 1957-58 recession benefited TV “because that’s when the advertiser had to decide where he could spend his money most usefully — and he found the answer in TV.” The picture is much the same at KABC-TV (Ch. 7), ABC outlet, where sales mgr. Elton Rule estimates business is 30% ahead of last summer. He terms this the station’s best year by far, and a 20% increase will appear in its new rate card effective Sept. 15. For fall, prime-time spots are virtually 100% sold out, B time 80%, C time for late night hours 100%, and day C time 60%. “People are buying spots 6 to 8 weeks in advance,” he comments. KRCA (Ch. 4) v.p. Tom McCray reported the NBC o&o’s business to be 50% above last year for the same time, and sees fall orders coming in much earlier than usual. “I think,” he opines, “it’s because of the nation’s prosperous economy, as well as the growth of the city.” KHJ-TV (Ch. 9) sales mgr. Howard Wheeler tells of record summer business vsdth sales 25% over last summer. Instead of the usual summer slump which begins in April or May, there was just a slight fall-off the first of July. Fall prospects are bright, with sponsors now buying Sept. & Oct. spots. He believes the spurt in national spots to be due in part to the booming network business, which is causing many national advertisers to seek local buys. KCOP (Ch. 13) sales mgr. John Hansen said business is up 20% over last year, that fall orders are coming in earlier than usual, and that he’s had to turn away some fall business. The slight summer slump was not as pronounced as usual, and orders are now coming in for Oct., an unprecedentedly early start. The station is being sold to NAFI Corp. (see story, adjoining column). KTLA (Ch. 5), the Paramount-owned independent, also is having a good summer, with business up 30% over last year, we’re told by sales mgr. Bob Jones. KNXT (Ch. 2), CBS 0-&-0, tells much the same story, with summer business the best it’s been in 4 to 6 years, and sales for the fall off to a good start. “Video Tape Rate Card No. 1” has been issued by NBC-owned WRCV-TV Philadelphia, which has 2 Ampex color Videotape recorders. Divided into categories of 1, 3, 10, 15, 30 & 60 min., the card establishes rates for various categories of recording activities. For example, for recording a 30-min. program, there is a $180 recording charge (one machine only), which includes one hour of rehearsal time. For making a 30-min. reference recording, there’s a $90 charge; duplicate prints $144 each; tape stock $200; playback charge $50 each; editing, $50 for first hour, $30 each additional hour; tape screening, $25 per half hour. AUGUST 17, 1959 Los Angeles’s KCOP Sold: NAFI Corp., the automotive , upholstery and carpet company which has been diversifying into broadcasting through acquisition of West Coast stations, last week signed a stock deal in which it will acquire the obligations of Los Angeles independent KCOP (Ch. 13), subject to FCC approval, in a transaction involving a little more than $5 million. The sale was negotiated by KCOP pres. Kenyon Brown, who heads NAFI’s bcstg. div. Brown will remain as pres, of the independent, and Bing Crosby remains chairman. Crosby, Brown and their associates, George Coleman and Joseph Thomas, receive 44,000 shares of NAFI stock with an approximate market value of just under $1 million. However, the total consideration involved is above the $5-million mark because of the obligations NAFI will assume. The Crosby-Brown group bought KCOP in 1957 for $4 million (Vol. 13:16, 22) from Copley Press, which paid $1,375,000 for it in 1953 (Vol. 9:46, 49, 62). The KCOP deal will give NAFI 2 Coast TV stations and one radio station. It previously bought KPTV Port ^ land (for $3.8 million) and radio KOBY San Francisco, o Brown had bought KOBY but assigned it to NAFI for $1.2 ; million. Included in the KCOP deal is the station’s syndi i cated film div. and financing of telefilms. The 4 previous « KCOP owners will control about 10% of NAFI’s stock. Love Those Commercials: Encouraged by a good ARB /j rating & mail reaction, KTTV pres. Dick Moore may con >i tinue his Cavalcade of Spots beyond the 13 weeks originally d contemplated, he informed us last week. The unique show, fi consisting entirely of commercials, debuted on July 11. While the Los Angeles independent did not take a i rating, ARB discloses the show to have run second in the A 7-station Los Angeles market. Slotted at 6:30 p.m. Sat., I Cavalcade posted 3.8 vs. front-runner Lawrence Welk, who | got 18.5 on ABC. Third was KNXT (CBS) with 2.9 for a ^ movie; NBC’s KRCA came 4th with 2.6 for African Patrol. »j Movies on the other independent channels drew 1.2 for KTLA and a tie of 0.6 for KHJ-TV and KCOP. [It should u be noted that the rating coincided with the show’s debut — 4 which could have attracted some infiated curiosity viewer t ship — or could have been the conservative beginning of a I steady audience build-up.] “Most of those writing in say they like our show, they i want more, and some want it to be an hour long,” Moore ^ told us. But the series, if renewed, will continue in the I 30-min. format. The main problem, he adds, is that I Screen Actors Guild has refused to grant the station a i waiver for re-use fees, so that sponsors must pay these | although there are no time charges. Sponsors understand i ably see no point in these expenditures when they have no i product distribution in Southern Cal. SAG’s spot rate for ) class B time is $125 per actor for 13 weeks unlimited use — ( but with 8 actors in the commercial, the cost goes to $1000. j Some agencies notify KTTV of the time limit in which the | commercial must be used to avoid extra payment. Sponsor reaction varies, of course. Amoco, which sells j only in the East, okayed use of its commercial despite the i rerun payment situation. But another advertiser refused j permission to use its prize-winning commercial because it I didn’t want to pay almost $900 to actors for a one-time screening. Some of the commercials used on the show have production budgets of $16,000. RCA shipped 25-kw Ch. 9 transmitter Aug. 10 anc 1 superturnstile antenna Aug. 12 to WAFB-TV (Ch. 28) I Baton Rouge, which holds temporary authorization to op | erate on Ch. 9 there.